Real estate investing has always been a great way to make a passive income, even during periods of economic uncertainty. Now, as a probable recession looms, many will be seeking ways to make smart, savvy investments to better ride the wave of financial instability that is on its way.
Given the turmoil within the real estate market during the last significant economic downturn in 2008, people may be hesitant to jump into real estate investments. However, as Forbes explored in November of 2022, investing in multifamily homes may just be the stable option people are looking for. The ongoing demand for affordable housing creates a recession-proof opportunity in the multifamily housing market.
Cignature Realty is a specialty company with a long and successful track record of closing hundreds of multifamily real estate transactions. The Cignature Realty team is committed to the best possible outcomes for their clients, even amid unpredictable economic times and unprecedented historical moments such as the Covid-19 pandemic. They bring years of experience in multifamily housing investment to the table.
The benefits of multifamily investing
The multifamily housing market includes properties like apartments, co-ops, and condo buildings. It has long been a popular option for real estate investors for a broad number of reasons, including the opportunities for positive cash flow, tax benefits, and the relative ease of financing.
Multifamily housing units have the potential to generate a sizable cash flow for investors, especially amid a historic housing shortage. Studies show that current multifamily vacancies sit at just 4.4% — a five-year low. Retail spaces on the first floor of multifamily units fare even better, with vacancies sitting at just 2.7%. These numbers signal the reality of a cash flow for the building owner that looks to remain positive, even amid difficult economic times.
“In almost every case, there is a silver lining to be found,” says Cignature Realty CEO Lazer Sternhell. “In this specific case, as higher interest rates push up the cost of multifamily developments and stricter lending standards lower returns, the same trends will compel more Americans to remain renters, many in multifamily buildings.”
Due to the reliable cash flow that multifamily housing units can provide investors, they remain relatively easy to finance. Lenders find them a low-risk investment option compared to single-family homes or single retail spaces. Investors could find more competitive terms and interest rates due to the favorability of multifamily investments.
The tax benefits that come with multifamily investing are another common draw for investors. Tax deductions are available for one’s mortgage interest, maintenance costs, repairs and renovations, and marketing. Partnering with a company like Cignature Realty, which specializes in this area of real estate, can allow newer real estate investors to become aware of these and other tax benefits. The experts can walk investors through the ins and outs that make up the labyrinthian real estate market, leading them to the best possible financial outcome.
A leader in New York City
Manhattan is, in many ways, the “Big Show” regarding real estate transactions. There are many options and opportunities, a high level of competition, and billions of dollars changing hands every business day. Cignature Realty has solidified itself as an expert in the New York City market, particularly in regard to multifamily investments.
The company has focused on mastering the technology and systems necessary to navigate such a complex market. Cignature Realty has also developed a proprietary database of almost every property, owner, transaction, contact, and detail related to New York Metro multifamily and mixed-use buildings. This database is used to customize investment sales, tailoring financing to specific individual clients.
Having a finger on the pulse of New York City multifamily real estate the way Cignature Realty does is a definite advantage in a market that can be unforgiving even in the best of times. “The Cignature Realty approach is customized, informed, and proven,” Sternhell adds.
A good bet in risky times
Even with a market whose overall health has been touch-and-go throughout the pandemic and the burgeoning recession, multifamily investments remain a relatively solid bet. Given the demand for affordable housing nationwide, the interest in multifamily real estate investments shows no signs of waning anytime soon — and Cignature Realty is ready to apply their expertise and help investors take advantage of this potentially lucrative investment option.
“The analyst or speculator can make up all sorts of reasons for the comeback of multifamily investing,” explains Sternhell, “but in the end, it very well may come down to the simple fact that renting is now much more affordable than buying.”
None of us may know what is to come down the road regarding real estate, but Cignature Realty has its eye on the market and is committed to the best possible outcomes for its clients.
